Planadviser, December 16, 2015, Lee Barney - Participants Under 35 Relying Less on Advisers


Forty-one percent of retirement plan participants under the age of 35 are relying less on an adviser, according to a new report from Spectrem, “Advisor Usage Among DC Plan Participants.” 

Among those 35 to 49 years old, 33% are depending less on advisers. The trend continues among older investors, although it declines to 28% for those 50 to 64 and to 19% for those 65 and older.

Overall, 54% of all participants use an adviser, but among this group, only 45% rely on and trust their adviser for the vast majority of their financial needs. When it comes to specialty investing, such as real estate or alternatives, 42% of participants under the age of 35 use an adviser. The numbers are equally strong for the other age groups: 35 to 49 (43%), 50 to 64 (34%) and 65 and over (55%).

Asked whether they have a portion of their investments with an adviser to compare results with their own investing, 18% of those under age 35 indicated this is a strategy they are testing. This is also true for 21% of those 35 to 49, 21% of those 50 to 64 and 27% of those 65 and older. The percentage of participants who had done most of their own investing but who are now transitioning more of their assets to advisers is 19% for those under age 35, 15% for those 35 to 49, 15% for those 50 to 64 and 24% for those 65 and over.


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